Crude oil tanker company DHT Holdings closed a $485 million secured credit facility agreement with a six-year tenor for the refinancing of of the company’s VLCCs.

The new credit facility will bear interest at a rate equal to LIBOR plus 2.40% and will have a 20-year repayment profile. Other terms and conditions are also in line with DHT’s current credit facilities.

All nine of DHT’s nine existing relationship banks committed to significant amounts including ABN Amro, Nordea, Credit Agricole, DNB, ING, Danish Ship Finance, SEB, DVB and Swedbank.

DHT also entered into an agreement with ABN Amro to increase the company’s revolving credit facility to $57 million from the current availability of $43.4 million. The revolving credit is currently undrawn.

The co-CEOs Svein Moxnes Harfjeld and Trygve P. Munthe said, “The refinancing endorses our access to bank financing at attractive terms through solid support from our relationship banks. The new facility includes a 20-year repayment profile supporting our focus on robust cash break even levels for the fleet.”

With the new financing totaling $485 million compared to the amount to be refinanced totaling about $461 million, the company will increase its cash position by about $20 million after the payment of fees and expenses. In connection with the refinancing, about $4.4 million in previously paid upfront fees related to the refinanced credit facilities will be expensed in Q2/18 as part of financial expenses.